Humber/Ontario Real Estate Course 4 Exam Practice

Which scenario best describes a "latent defect"?

1. A cracked basement floor that is visible upon inspection.

2. An encroachment known only to the neighbor but not visible.

3. An old roof that is nearing the end of its useful life.

4. A rebuilt deck without necessary permits.

5. A structural issue not detectable by a general inspection.

6. Visible mold in the basement.

The correct answer is: A structural issue not detectable by a general inspection.

A latent defect refers to a flaw or issue in a property that is not easily visible or detectable during a standard inspection and could significantly affect the property's value or safety. The correct choice describes a structural issue that is hidden and cannot be identified through general inspection methods. This aligns with the definition of a latent defect, as it emphasizes the undetectable nature of the problem, which might only become evident under certain conditions or after significant damage has occurred. In contrast, the other scenarios present issues that can be observed or recognized: - The cracked basement floor is something that can be seen during a routine inspection, making it an obvious defect rather than a latent one. - An encroachment, while not visible, is an acknowledged issue specific to the neighbor and is usually known to the property owner, which does not fit the latent defect criteria as it involves local knowledge rather than hidden damage. - An old roof nearing the end of its useful life can be identified, particularly if someone looks closely, thus it does not qualify as a latent defect. - A rebuilt deck without necessary permits highlights a regulatory issue rather than a hidden structural defect. - Visible mold in the basement is easily recognizable and therefore not latent. Overall, the distinction of a latent defect is rooted